VAMC targets US$6.15 billion bad debts this year

By the end of 2018, the Việt Nam Asset Management Company (VAMC) must handle at least VNĐ140 trillion (US$6.15 billion) worth of bad debts it had purchased.

Việt Nam Asset Management Company is urged to hasten the buying and selling of bad debts at market value. — File Photo

HÀ NỘI – By the end of 2018, the Việt Nam Asset Management Company (VAMC) must handle at least VNĐ140 trillion (US$6.15 billion) worth of bad debts it had purchased.

This was revealed by Deputy Governor of the State Bank of Việt Nam Nguyễn Kim Anh at VAMC’s conference to implement 2018 tasks on Thursday. Kim Anh praised the efforts of VAMC in handling bad debts, especially in purchasing debts at market value and via special bonds.

He asked VAMC to hasten the buying and selling of bad debts at market value and to buy bad debts from credit institutions by issuing special bonds in return, to ensure system security.

The year 2017 was the first year VAMC was successful in buying bad debts at market value, worth more than VNĐ3 trillion.

The company needed to buy a total of VNĐ6.6 trillion bad debts at market value in the 2017-20 period.

The company was also asked to enhance operation capacity while closely co-ordinating with relevant ministries to increase its capital in an effort to improve its financial capacity to handle bad debts at market value effectively.

Under the Prime Minister-approved project of restructuring credit institutions in association with handling non-performing loans in the 2016-20 period, VAMC’s capital would be increased from the current VNĐ2 trillion to VNĐ10 trillion in 2020.

Kim Anh also stressed on the role of VAMC in contributing to the development of a debt market in Việt Nam.

VAMC’s report showed that as of the end of 2017, VAMC bought more than 26,600 debts from 42 credit institutions worth nearly VNĐ308 trillion at original value at a price of VNĐ277.75 trillion.

It signed up with five credit institutions to buy bad debts at market prices worth VNĐ3.1 trillion in total last year, meeting the target set by the central bank.

The company reclaimed some VNĐ30.7 trillion bad debts in 2017, 40 per cent higher than the target.

From the beginning of this year, VAMC hastened the selling of mortgages, worth some VNĐ380 billion, including Tân Quốc Duy Steel Company’s property in southern Bình Dương Province, Puzolan Gia Lai Cement Company’s mortgage for a loan at Saigon-Hanoi Bank and bad debts of Kim Sơn Building Material Production Company at the Commercial Bank for Investment and Development of Việt Nam.

VAMC’s Chairman Nguyễn Tiến Đông in an interview with Vietnam News Agency said VAMC planned to buy bad debts by issuing special bonds worth VNĐ25-30 billion and buy debts at market prices of at least VNĐ3.5 trillion in 2018.